Sugar at 3-week high on spot demand, output concerns

Additional supply in the spot market restricts gains

Sugar futures today rose by Rs 17, or 0.47%, to a three-week high of Rs 3,625 per quintal, driven by the rising demand in spot markets and concerns over production due to poor rainfall in key growing regions.

At the National Commodity and Derivatives Exchange, the October contract traded Rs 17, or 0.47%, higher at a three-week high of Rs 3,625 per quintal, with an open interest for 35,210 lots.

September sugar traded higher by Rs 15, or 0.43%, at Rs 3,527 per quintal, with open interest of 21,580 lots.

Analysts attributed the persistent rise in sugar futures to huge positions created by speculators, triggered by the rising demand amid concerns over output due to deficient rains in key cane growing states.

 

However, additional supply in the spot market restricted gains, they added.

Meanwhile, at Mumbai's Vashi wholesale market, Medium sugar (M-30) gained  Rs 15 per quintal to Rs 3,561/3,711 in yesterday's trade.